The Gender pay gap (GPG) continues to be a major problem in Pakistan, with men and women earning significantly unequal salaries, according to an International Labour Organisation (ILO) report.
Pakistan has one of the largest disparities in employment rates between men and women across the globe.
When considering the workforce composition, the GPG in Pakistan is 25% based on hourly wages, meaning women earn Rs750 for every Rs1,000 earned by men. For monthly wages, the gap is about 30%, given that women also work fewer hours, indicates the report.
It says a large portion of this gap is not driven by differences in individual or labour market characteristics between men and women such as education, skill or age and is rather unexplained, suggesting “potential” discrimination.
Pakistan’s GPG is higher than that of other regional countries such as Sri Lanka, Nepal, and Bangladesh. For instance, the GPG computed using hourly wages is equal to 22% in Sri Lanka, 18% in Nepal and -5% in Bangladesh, it maintains.
“Despite the value of the GPG remaining high in Pakistan, it has decreased over recent years. Specifically, the average GPG computed using hourly wages was equal to 33% in 2018,” reads the report.
The GPG is however way better in the formal economy compared to the informal and household sectors.
“The GPG varies significantly for workers in different segments of the labour market. In particular, the GPG is close to zero in the formal economy, while being above 40 % in the informal and household sectors. Consistently, the GPG is also low among formal workers as well as for workers in the public sector. This suggests that, when compliance with the labour legislation is guaranteed, the GPG is substantially reduced.”
The GPG is a measurable indicator of inequality between women and men. Most governments have legislated to guarantee equality of treatment between men and women in remuneration. The ILO Equal Remuneration Convention, 1951 (No. 100) is one of the most highly ratified conventions. Yet, the gender pay gap persists.
